The British government’s urgent plea to Amazon to unfreeze seller funds has sparked a wave of concern and action. Kevin Hollinrake, the enterprise minister, wasted no time in expressing his deep concern after receiving numerous complaints. He urged Amazon to address the issue urgently, recognizing the potential impact on British entrepreneurs.
Small business commissioner Liz Barclay received around four hundred complaints, prompting her to investigate the matter further. The result was alarming – many UK business owners were struggling due to Amazon’s payment blockade. Barclay noted the influx of desperate appeals for help from sellers on the brink of losing their businesses.
Lack of communication
British sellers are frustrated by the lack of communication from Amazon regarding the reasons for the payment blockade. They are left in the dark on how to resolve the issue, criticizing the market leader’s inadequate accessibility. With Amazon’s revenue in the UK increasing by 12 percent from the previous year, the impact of this issue cannot be ignored.
VAT requirement
More than 2,100 responses have flooded Amazon UK’s Seller Central forum, highlighting the impact of the new VAT checks. Sellers are anxiously awaiting payments and express concerns over the survival of their businesses. Amazon’s brief response concerning the VAT requirement has done little to ease their worries.
Amazon: ‘We aim to minimize any inconvenience.’
The situation has prompted the British government to take action, with enterprise minister Kevin Hollinrake calling for Amazon to unfreeze accounts until a proper process is in place. He acknowledged the need to ensure VAT collection, but emphasized the ill-timed and knee-jerk nature of Amazon’s actions.
Previous incidents in Europe, where Amazon wrongly froze funds, have added to the concern surrounding the current situation in the UK. Mistakes were acknowledged by the company after reports surfaced in German media in November.
